Post on 29-Dec-2015
TO THE SEARCH OF NEW MODELS? FROM DEPENDENCY TO INTERDEPENDENCY.
Europe and Latin America
From colonization to independence
Latin America’s incorporation to the world-the beginning of subordination and plunder of resources
Colonial relationships: race and ethnicity, the other/inferiority/imitation
Economic dependency political and cultural dependency
Independence-neocolonialism
70-80s: a new profile
70s-multipolarism and détènte: Social democracy as a new alternative searching for new partners and influence among political parties in LA
Inter-parlamentarian contacts and regular meetings
80s-bipolarisation in Central America searching for a mediation role France, Germany and Sweden
Central America: a test for multi-polarity
1981 Resolution Mexico-France on El Salv1982-Nicaragua- assistance offers from
Europenegative reactions from the USEC gives in and goes back to a low profile
Contadora group’s support to peaceful solutions
Falklands-re-polarization-EC+ US vs LASn Jose’s process- support to Arias Plan
Rio’s dialogue since 1990
Political dialogue between two continents Development of differentiated relations
following regional groups, development levels and political/economic interests
3rd generation agreements: conditionality clauses on democracy, human rights and structural economic reforms
Neo-liberalization and the end of alternatives?
Sub-regional differentiated treatment: 90s
Andean group –preferential agreements and cooperation projects demands of strategies to fight coca production
Central America: development assistance, framing small/middle peasant production-marked orientated networks of support
Mercosur – frame agreements and direct support to regional economic integration cooperation and open path for free trade
Privileged relations
Mexico: Economic partnership, political coordination and cooperation agreement, FTA entered into force 2000.
Chile: Association Agreement 2002-entered into force 2005towards a free trade area
The survival of colonial links: bi-continental summits
following Spain and Portugal’s presidencies
Rio 1999-strategic association and Action plan Madrid 2002- to increase cooperation in 3 areas: hum.r.,
promotion of the information society and struggle against poverty
Main goal-human developm and the strengthening of civil society Guadalajara 2004: intensifying the struggle against drugs,
agreements on reg cooperation Lima maj 2008, May 2010 in Madrid “Towards a new stage in the bi-regional
partnership: Innovation and Technology for sustainable development and social inclusion”
Jan 2013: EU-CELAC meeting in Santiago, Chile: Alliance for Sustainable Development to Promote Investments of Social and Environmental Quality
Madrid May 17-18, 2010
LAC: very divided politically/ideologicallyHonduras as a divider: boycott (UNASUR),
but also the Cuban issueFinally Venezuela and UNASUR attended, not
Honduras (only to the CA-UE summit: May 19)
What happened with the strategic alliance project of 1999?
Civil society
Civil society’s organizations- NGOs-following already existing trade agreements: Europe-Mexico-1st meeting Brussels-2002, Mexico 2005, Vienna 2006: discussion, reports and accountability
EU-Andean countries-NGOs forum-March 2005-Brussels
In all summits: parallel NGOs meetings
TradeEU- second regional associate of LA after
the US but losing importance to China in South America
2011: 214 bill euros: 6,5% of EU’s total trade
Effects of EC-EU’s enlargement on EU-LA’s relations
Exchange structure: typical developed-developing countries (industrialized products vs raw materials) with the exception EU-Mexico
LA’s share in EUs imports (percent)
1965 1970 1980 1990 2004
world 100 100 100 100 100
Within EC-EU
46 51 57 61 30.9
LA 5.3 4.2 2.9 2.1 5.2
LA’s share in EU’s exports (percent)
1965 1985 1990 2004
LA 6.4 4.1 2 3.6
Total 100 100 100 100
2009: EU’s trade with LAC
EU-LA trade up to 2012
EU’s imports and exports: origin and destination 2004
(percent)Partner regions imports exports
NAFTA 58.8 89.4
Latin America 5.2 3.6
EU candidates 0.1 0.0
EFTA 0.5 0.1
Medit countries 0.3 0.1
ASEAN 4.2 0.2
LA: exports structure
1990 1999
Raw materials +energy
43% 23%
manufactures 57% 64%
EU’s imports and Mercosur
Raw materials + energy (in % of all imports):1965: 45 % 1990: 24%
1995: 55% of all Mercosur’s exports to EU raw materials and energy
2005: 21.2%
EU-Mercosur
1995: Frame-agreement of cooperation and association starts to be negotiated
1999: Free trade agreement negotiations startgoal 2006
Association agreement: 2001: 3 pilars: MNC/polit/trade
Assistance/consultancy –for regional integration
EU interested in telecommunication and financial services
Obstacles for FTA: EU’s CAP but advances since Cancun
EU-Trade with Mercosur
EU imports from Mercosur
EU exports to Mercosur
EU trade with Chile
EU-Chile
EU: Chiles biggest trade partner and biggest investor
Chile exports mainly minerals and agrifood sectors
Also liberalization in service sectors
The EU and the Andean countries
Political dialogue and cooperation agreement: 2003
EU: leading donor of official development aid to the Andean region, with €713 million set aside
June 2007: negotiations began on a new Association Agreement bi-regional trade and investment
Political Dialogue and cooperation agreements
A very broad program of cooperation at the economic, political, social level focusing strategically on the fighting of drugs production and traffic
Also: providing aid for e deepening of the integration process within Andean countries
Problems towards assoc agreements
June 2007: negotiations began on a new Association Agreement
Several round negotiations (3) but the 4th round to take place in Brussels in July 2008: suspended
Problem: agreements around intellectual property, privatization of public services and state licitations
Problems-negotiations with EU
Division among Andean states: Colombia and Peru-for bilateral agreements, Ecuador y Bolivia: bloc negotiations and agreements
Official announcement-mid nov: Colombia and Peru continue the negotiations on their own, Ecuador wants to follow
Bolivia is isolated-insists on bloc negotiatBolivia also enters bilateral negotiations
EU trade with the Andean community
EU exports to Andean Community
EU imports from the Andean C.
EU-Central America
A relation based on development cooperation in the 1980s-1990s
Upgrade to a trade relation: negotiations for an Association agreement
Problems in the negotiations: quotas, the entrance of European milk’s products, rules of origin for CA’s textiles, banana’s entrance to the EU plus migration issues
Signed is spite of all in Madrid May 2010
EU-CA 2006-2008
CA-EU
EU-México: FTA in 2000
Signed in 1997- starts in 2000 Elimin tariffs -48% for all ind product fr EU, 82%
for all Mex products to EUGoals: elimin of all tariffs for ind prod 2007No visible results in trade exchanges-stagnated
and big deficits for MexicoInvestmentsrules rejected for MAI accepted by
Mexico (already-privatized banling system-mainly European investments
EU-Mex-FTA: a door for EUs products to the US (NAFTA)
Clause of democracy and HR-difficult to accept for Mexico
EU’s trade with Mexico
Year Imports: % of tot
Export: % of tot
2001 0.78 1.71
2002 0.69 1.70
2003 0.69 1.64
2004 0.67 1.52
2005 0.76 1.58
Mexico’s trade with EU
Year EU share of tot imports %
EU share of tot exports %
2000 8.27 3.30
2001 9.34 3.19
2002 9.50 3.19
2003 10.16 3.55
2004 10.06 3.18
EU trade with Mexico
EUs import from Mexico
EUs exports to Mexico
EU’s investments in LA: the crucial pillar
Investments FDI to LA: increase during the 90smostly privatized industries: energy/telecommunications, banks, trade:
tot: 385 bill in 2010: 43% of the region’s FDI and higher than EU’s investm in Russia+China+India combined
Latest summit: investment is the crucial pillar of the relationship EU-LA
FDI fr EU concentrates on Mercosur (recently also Mexico)
EU’s investments in LA by country:Spain: 28% (55% of all Spanish investm outside EU)GB: 22%, France: 13%; Germany: 14% (45% of German
investments in developing countries), Holland: 14%, Belgium: 3%, Italy: 2%, Sweden: 1,3%
EU’s investments in LA: 2
EU: the biggest extern investor in LA (decade 2000: 40%):
2011: US (18%), Spain (14%) y Japan (8%). China: 5,2%
Flows of European FDI to Latin America peaked in 2000 (€ 46 billion), with the total stock of European investment in Latin America growing from € 189.4 billion in 2000 to € 385 bill in 2010 2
Investments concentrated in Mercosur and México
Investments-where?
2011: 57% FDI in South America (without Br): in agriculture, mining and energy, services: 36%, manufactures: 7%.
Brasil: 43,8% of all FDI in LA. Manufactures 46,4%; services: 44,3%, raw materials and extractive ind 9,2%
México, CA and Caribbean: services: 52,5%; manufactures: 39,7%, natural resources: 7,8%
81% of all FDI: Brasil, México, Chile, Colombia and Peru
EU: Assistance Aid to LA
LA not a priority area for EU mid 90s: only 10% of all EU development aid but it was 43% of all external aid to the region in 1995 (17% came from the USA)
Aid concentrated on Central America and Bolivia
Focusing on economic reforms, support to public infrastructure: to make the local governments more effective, in democracy, human rights issues and struggle against poverty.
A case of aid: Sweden-LA
Sweden: 2002: less than 10% of all bilateral aid: to LA
Aid: mostly to Central America (Nicaragua and El Salvador-peace, reconciliation, economy rehabilitation, democratisation-this has changed lately-abandoning CA)
South America: Bolivia, Chile, Brazil-democratisation, economic reforms, human rights and technical education
The main areas: health, education, human rights
Civil Society and aid in the case of Sweden
Swedish NGOs channel 20 % of all bilateral aidBoth secular and religious NGOsFocusing more and more on long term projectsMain financing sources the state (80%) but
their own financing is also increasingCooperation partners: local NGOs and
sometimes: state organsSome NGOs have local offices and send their
own assistance volunteers: Svalorna, Civis
EU-LA: an inconsistent relationship?
Priorities for EU: Economic investment, trade, assistance
Priorities for LA- trade-specially Mercosur, investments –specially Mexico
Trade is becoming balanced but it has lately been a deficit for EU and is still insignificant for EU-therefore: interest in Association agreements and FTAs
Extreme interest in LA’s nature resources-competition with China
EU-sometimes an alternative (HR and democracy clauses) but mostly a contradictory-inconsistent partner EU’s policies subordinated to the US, to CAP and complicated by enlargement
Asymmetry problems extremely present although LA’s dependency is even bigger from the US